India Parliament passes Mines and Minerals Amendment Bill 2026

The Indian Parliament has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, which seeks to establish a more predictable fiscal regime for the domestic mining sector. The Bill, which has passed both the Lok Sabha and the Rajya Sabha, now awaits presidential assent.

The legislation aims to reduce the impact of varying state-level levies, such as royalties, auction premiums, and various cesses, which the government argues can make domestic minerals less competitive and increase reliance on imports. The Ministry of Mines stated that the amendment is intended to encourage investment and support economic objectives like 'Aatmanirbhar Bharat' and 'Viksit Bharat 2047'.

However, the Bill has reignited a constitutional debate regarding fiscal federalism. While the Ministry of Mines maintains that the amendment does not strip states of their rights to land or mineral revenue—noting that approximately 90 per cent of mining taxes currently accrue to states—critics and mineral-rich states view the move as an intrusion. The Bill proposes that state governments may only impose taxes or levies on mineral rights or mineral-bearing land under conditions or restrictions prescribed by the Central government.